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World Trade Indicators 2008 http://www.worldbank.org/wti2008. Ravindra A. Yatawara May 18 th - May 19 th to 2009 Geneva, Switzerland. Structure of WTI database: organizing for users. TRADE FACILITATION What gets measured, get managed Logistics Performance Index (LPI)

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slide1
World Trade Indicators 2008http://www.worldbank.org/wti2008

Ravindra A. Yatawara

May 18th - May 19th to 2009

Geneva, Switzerland

slide3
TRADE FACILITATION

What gets measured, get managed

Logistics Performance Index (LPI)

Trading Across Borders- DB

Others Indicators-

e.g. Liner Shipping Connectivity Index

slide4
Thick borders imply high trade costs that:
    • constrain access to regional and global markets, and
    • lower competitiveness of firms and their scope to exploit scale and diversify
    • In Context of Global Economic Crisis
    • Trade Facilitation Reform seen as key to penetrating shrinking export markets
slide7
www.worldbank.org/lpi

Ranking and component

  • Logistics business environment and institutions
  • Performance data

Available asrankings, maps, scorecards

Contact: [email protected]

slide8
Partnership with the private sector
  • Built on 5,500 country assessments by more than 800 logistics professionals worldwide:
    • Assessments from professionals outside the country, trading with it
    • Assessment of domestic business environment and institutions and time and cost data
    • Questionnaire designed with input from trade and logistics professionals
  • Primary data gathered for 150 countries
slide9
The survey uses an anonymous, web-based questionnaire asking respondents to evaluate their country of residence and eight countries they are dealing with on several logistics dimensions
slide10
International LPI – 150 countries
  • - Score (1-5,best)
  • - Qualitative
  • - Based on respondents evaluating 8 countries they deal with
slide11
The (International) LPI measures SEVEN dimensions of country performance
  • Efficiency of the clearance process
  • Quality of transport and IT infrastructure
  • Ease of arranging competitively priced shipments
  • Logistics competence and quality of logistics services
  • Tracking and tracing
  • Domestic logistics costs
  • Timeliness
slide12
DOMESTIC LPI - 100 countries

1) Performance – Quantitative

2) Environment & Institutions- Qualitative

slide13
 PERFORMANCE DATA FOR INDONESIA
  • Rate of physical inspection (%) _0.12
  • Customs clearance (days) 1.58
  • Lead time export, median case (days) 2.54
  • Lead time import, best case (days) 1.91
  • Lead time import, median case (days) 3.88
  • Number of border agencies exports 2.73
  • Number of border agencies imports 2.73
  • Possibility of a review procedure (%) 0.38
  • Typical charge for a 40-foot export container or a semi-trailer (US$) 266.00
  • Typical charge for a 40-foot import container or a semi-trailer (US$) 244.44
slide14
ENVIRONMENT & INSTITUTIONS
  • 5 choices from very high to very low
  • Reported as share that chose Very high/high
  • 1) logistic operational environment
  • 2) quality of infrastructure
  • 3) efficiency and effectiveness of processes
  • 4) level of competence of professions
  • 5) 3 Year evolution of business env, customs
  • 6) Incidence of informal payments, crime
slide15
LPI Rankingpresents performance scores of all countries on the LPI index, as well as on the seven key dimensions, in a sortable format
slide20
Key messages

Trade logistics performance is only as good as the weakest link

Predictability and reliability are as important as cost and speed

The LPI can assess your country’s bottlenecks and opportunities for reform – and where, if necessary, to direct “aid for trade”

The LPI can mobilize broad constituencies for reform

key policy implications
Key Policy Implications

POLICY IMPLICATIONS

  • Expand the traditional reform agenda beyond customs reform and infrastructure development
  • Improve the quality of logistics services and increase border agency coordination
  • Embark on comprehensive reform—processes, services, and infrastructure—with broad public and private support
  • LPI as an preliminary indicator –
  • Pursue Trade and Transport Facilitation Audits (TTFA)  Develop National Logistics Strategies
slide22
LPI 2009 - LAUNCHED May 12, 2009
  • Improvement in survey design
  • More explicit description of time to export/import
  • New module on customs
  • Domestic Logistics costs replaced with Implementation of Cargo Security Requirements
  • Results out end June /early July 2009
slide23
Trade Facilitation Indicator:

DOING BUSINESS (DB)

DB 2010 : Out Sept 2009

slide24
Doing Business: Quantitative measure of regulations for
  • Starting a business
  • Dealing with construction permits
  • Employing workers
  • Registering property
  • Getting credit
  • Protecting investors
  • Paying taxes
  • Trading across borders
  • Enforcing contracts
  • Closing a business

Source: World Bank Doing Business

slide25
Top 30 on the Ease of Doing Business - 2009

Source: World Bank Doing Business

slide26
Top Reformers in 2007/2008

Source: World Bank Doing Business

slide27
Top reformers by indicator

Source: World Bank Doing Business

slide28
Highlights of Doing Business 2009
  • 239 reforms in 113 countries. Highest recorded in 6 years of Doing Business
  • Eastern Europe and Central Asia – 62 reforms in 23 of the 25 countries, 25% of the total recorded worldwide. Fastest reforming region.
    • 4 of top 10 reformers from Eastern Europe and Central Asia
  • Africa – 28 of 46 countries completing 58 reforms, highest rate of reform recorded in the region.
    • 3 of top 10 reformers from Africa
  • 1000 reforms recorded over past 6 reports, 174 informed by Doing Business

Source: World Bank Doing Business

slide29
Most popular reforms in 2007/2008

Source: World Bank Doing Business

doing business subcategory
Doing Business Subcategory

TRADING ACROSS BORDERS

doing business trading across borders rank 1 181 worst
Doing Business -Trading Across Borders (rank 1 – 181, worst)
  • Based on:
      • 1) Number of documents for import/export
      • 2) Time(in days) for import/export
      • 3) Cost(US $ per container) to import/export

A higher rank is associated with a more favorable environment for trading across borders.

Source: World Bank Doing Business

slide32
Documents required to export and import
      • Bank documents
      • Customs clearance documents
      • Port and terminal handling documents
      • Transport documents
  • Time required to export and import
      • Obtaining all the documents
      • Inland transport
      • Customs clearance and inspections
      • Port and terminal handling
      • Does not include ocean transport time
  • Cost required to export and import (US $ per container)
      • Obtaining all the documents
      • Inland transport
      • Customs clearance and inspections
      • Port and terminal handling
      • Official costs only, no bribes or tariffs

Source: World Bank Doing Business

complementarities lpi db
Complementarities LPI/DB
  • Comparisons and overlaps
    • Limited correlation (at least with stringent tests: rank, partial) of main indicators (LPI and DB time X/M)
    • Different concepts of time to import and export, with huge discrepancies
slide41
Other Trade Facilitation Indicators:

UNCTAD Liner Shipping Connectivity Index

(0-100, best)

Computed average index which combines the available information about a country’s maritime transport.

For comparison purpose, maximum value of the LSCI is set to 100.

Calculated as the un-weighted average of five components: ships, TEUs, companies, services, and maximum vessel size. Each one of the five components is indexed to assume a maximum value of 100 in 2004. Average of the five indexed components is again indexed so that its maximum value for 2004 is 100.

Source: UNCTAD Transport Newsletter

slide43
Total Freight Cost to US

(% of import value)

Ratio of total freight charges and insurance costs to the net value of merchandise goods imports.

Calculated at the origin of US ports and is reported as a percentage of import value.

Includes all shipment through air, maritime and land freights but excludes domestic transportation costs between cities.

Source: US International Trade Commission

total freight costs to us of import value top 10 countries lowest frequent charges
Total Freight Costs to US ($ of import value) Top 10 countries - Lowest Frequent Charges

Source: WTI 2008

total freight costs to us of import value bottom 10 countries highest frequent charges
Total Freight Costs to US ($ of import value) Bottom 10 countries – Highest Frequent Charges

Source: WTI 2008

slide46
Air Freight Cost to US (% of import value)

Ratio of total air freight charges and insurance costs to the net value of merchandise goods imports.

Calculated at the origin of US gateways, and is reported as a percentage of import value.

Average Air Freight Rate reflects the costs of transport from the US main ports to the foreign coutnries at the US customs procedure.

Source: US Department of Commerce, US Census Bureau. Us Imports of Merchandise

air freight costs to us of import value top 10 countries lowest frequent charges
Air Freight Costs to US ($ of import value) Top 10 countries - Lowest Frequent Charges

Source: WTI 2008

air freight costs to us of import value bottom 10 countries highest frequent charges
Air Freight Costs to US ($ of import value) Bottom 10 countries - Highest Frequent Charges

Source: WTI 2008

slide49
Air Freight Cost from US (US$)

Reflects the DHL international United States outbound worldwide priority express rate for a 1 pound rate packages in current US dollars.

Additional service charges, shipment value protection, and other surcharges are excluded.

Source:DHL Published Tariff Guide on Domestic and Internaitonal Shipping Services

slide52
Pump Price of Diesel Fuel

(US $ per Liter)

Reflects the prices at the pump for the most widely sold diesel fuel within the country.

Prices have been converted from the local currency to US dollars.

Source: International Fuel prices 2005 or World Bank WDI database

slide54
Electricity Cost for Industry

(US $ per kilowatt hour)

Based on the information posted by the Energy Information Administration of the US Department of Energy on the industry electricity prices per kilowatt-hour from 1997 to 2005 (in US Dollars). The per kilowatt-hour prices are based on the energy end-use prices including taxes, and are converted into US Dollars using the average exchange rate for the given years.

Source: International Energy Agency for all years, and the Energy Information Administration of the US Department of Energy for some additional countries in 2004.

electricity cost for industry us per kilowatt hour top 10 countries lowest cost
Electricity Cost for Industry (US $ per kilowatt hour) Top 10 countries (Lowest cost)

Source: WTI 2008

slide56
Telephones (fixed and mobile) per 100 inhabitants (%)

Total number of fixed telephone mainlines connecting a subscriber to the telephone exchange equipment and cellular mobile phone subscribers to a public mobile telephone service using cellular technology, measured per 1000 people.

Source: World Bank WDI database or International Communication Union (ITU) database

telephones fixed and mobile per 100 inhabitants top 10 countries highest numbers
Telephones (fixed and mobile) per 100 inhabitants (%)- Top 10 countries (highest numbers)

Source: WTI 2008

slide58
Average Cost of a 3 Minute Call to US (US$)

Average cost of a peak rate 3-minute with the fixed line call from the country to the United States, in current US Dollars.

Source: World Bank WDI database or International Communication Union (ITU) database

slide60
Personal Computers per 100 inhabitants (%)

Number of self-contained computers designed for individuals users, measured per 1000 people.

Source: World Bank WDI database or International Communication Union (ITU) database

personal computers per 100 inhabitants top 10 countries highest numbers
Personal Computers per 100 inhabitants (%) – Top 10 countries (Highest numbers)

Source: WTI 2008

slide62
Internet Users per 100 inhabitants (%)

Number of people with access to the worldwide network through a dial-up, leased, or broadband connection, measured per 1000 people.

Source: World Bank WDI database or International Communication Union (ITU) database

slide64
Secondary School Enrollment (%, gross)

Ratio of total enrollment, regardless of age, to the population of the age group that officially corresponds to the level fo education shown.

Source:World Bank WDI database

slide66
Tertiary School Enrollment (%, gross)

Ratio of total enrollment, regardless of age, to the population of the age group that officially corresponds to the level fo education shown.

Tertiary education, whether or not to an advanced research qualification, normally requires as a minimum condition of admission, the successful completion of education at the secondary level.

Source:World Bank WDI database

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